Urgent Follow-Up on Red Tape Reduction for Entrepreneurs

Lutic Mosoane sent a message to Stella Ndabeni-Abrahams.

To
Stella Ndabeni-Abrahams
From
Lutic Mosoane
Subject
Urgent Follow-Up on Red Tape Reduction for Entrepreneurs
Date
Feb. 5, 2025, 11:20 a.m.
Dear Honourable Minister Ndabeni-Abrahams,

Three years ago, the President stood before the nation and committed to reducing red tape for entrepreneurs—a promise meant to create an enabling environment for small businesses to thrive. Yet, here we are today, still buried under bureaucracy, waiting for real change while small businesses struggle to survive.

The reality on the ground is sobering: According to the NSBC, 1,500 entrepreneurs shut their doors last year alone. That’s not just 1,500 lost businesses—it’s countless jobs lost, dreams crushed, and communities left without economic lifelines. The painful truth is that small businesses, which should be the backbone of our economy, are instead collapsing under the weight of excessive regulations, delayed funding approvals, and policies that do not reflect the realities of running a business in South Africa.

Entrepreneurship: The Only Viable Solution to Unemployment
South Africa faces a youth unemployment crisis, and big corporations and government jobs alone cannot fix it. Entrepreneurship remains the most powerful vehicle for job creation, but without swift and decisive action to remove unnecessary barriers, we will continue to see more businesses shut down instead of scale up.

The challenge is not that entrepreneurs lack ideas, skills, or resilience—we lack an enabling environment to thrive. The excessive red tape, slow-moving regulatory processes, and fragmented government support are strangling businesses before they can even stand on their feet.

The Biggest Barriers That Are Choking Entrepreneurs
Regulatory Bottlenecks – Starting, operating, and scaling a business should be seamless. Instead, entrepreneurs are trapped in a cycle of compliance hurdles that consume valuable time, energy, and money.
Funding Roadblocks – Government support exists on paper, but in reality, many entrepreneurs face endless delays, complicated application processes, and eligibility criteria that exclude those who need it most.
Disjointed Government Processes – Entrepreneurs are expected to navigate multiple departments and agencies for compliance, licenses, and funding, all while trying to run their businesses. This is inefficient, costly, and discouraging.
The Cost of Compliance – Small businesses spend an unfair portion of their limited capital on meeting regulations, instead of investing in growth, innovation, and job creation.
Entrepreneurs Have Solutions—Let’s Bring Them to the Table
The problem is clear, and so is the solution: We need entrepreneurs at the table when policies are made. We are not just here to complain—we come with practical, implementable solutions that can remove barriers and accelerate economic growth.

I propose the following immediate interventions:

Entrepreneurial Task Force on Red Tape Reduction – A dedicated team of experienced entrepreneurs working directly with the Department to identify and eliminate unnecessary regulatory barriers.
One-Stop Digital Compliance Hub – A single, integrated online system where entrepreneurs can register, comply, and apply for funding without unnecessary delays.
Funding Fast-Track Program – A streamlined approval system with a 30-day turnaround commitment for government-backed funding applications.
Red Tape Reduction Act for Small Businesses – A legislative commitment to ensuring that all new policies are designed with entrepreneurs in mind and do not impose unnecessary burdens on small businesses.

My Commitment to Being Part of the Solution
I am not just raising concerns—I am offering to be part of the solution. As the founder of Winsome Africa, I have worked with entrepreneurs across industries, helping them navigate financial and operational challenges. I have seen what works, what doesn’t, and what needs to change. I am ready to use my expertise and my experience to help drive the reforms that are urgently needed.

Let’s Engage—Time for Real Action
Minister, we cannot afford another three years of empty promises. We need action, and we need it now. I request a formal engagement between your office and entrepreneurs—not just to talk but to develop and implement real, measurable solutions.

Let’s cut the red tape and unleash the power of small businesses to drive South Africa forward. I look forward to your response and the opportunity to work together toward a business-friendly, job-creating economy.

Yours sincerely,

Tumuge Lutic Mosoane
Founder & President, Winsome Africa

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